The Dynamic Relationship Between Trade Liberalization and Economic Growth in Pakistan: ARDL and ECM Approach

Abstract

The have a have a take a observe analyzed the impact of trade liberalization on economic increase in Pakistan. The experiential assessment is completed via the usage of time series statistics from 1980-2015. Autoregressive Distributed Lag (ARDL) certain attempting out to Cointegration is used to understand the long term and quick run dating amongst mounted and independent variable. The effects advise that there can be a long time first-class and extremely good dating amongst alternate liberalization and economic boom in Pakistan. The outcomes moreover advise that there can be a horrible and big dating amongst alternate and monetary boom in short run. This is due to the prone battle manipulate institutions and shortage of satisfactory organization withinside the usa. The horrible impact is due to the raw material exports instead of final goods. The short run results verify long time relationships checked with the useful resource of the usage of Error correction model. Export leaning change policies and high-nice strugglefare manage organisation are the insurance recommendations.